New Space: Blockchain Games | PitchBook

by Arthur · September 30, 2022

The private markets are constantly developing, and new areas rise – and then sometimes fall – within a few years. Given this flux, identifying and tracking tomorrow’s most promising areas can be challenging. That is why our analysts have developed a methodology to define and categorize these new areas. In this post, we look at sports technology – just one example of a space that is rapidly taking off.

Unless otherwise noted, data points included in this post represent live counts from the PitchBook platform as of September 28, 2022. PitchBook’s data on companies, investors and deals is subject to frequent change. Where possible, we’ve linked to previews of PitchBook profiles, which give a clear sense of the types of robust data PitchBook clients have access to.

What are blockchain games?

Startups in this space are integrating aspects of blockchain technology into video games in an effort to change game business models and increase player agency. Blockchain technologies, particularly in the form of non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs), are seen as a way to separate revenue streams away from publishers, giving more control and ownership to players. Blockchain gaming companies either create blockchain games or provide the infrastructure that enables them.

What is Ethereum?

Ethereum is a decentralized platform powered by blockchain technology. Although it is best known for its cryptocurrency ether or ETH, it can also be leveraged by anyone to create secure digital technology. Ethereum is often the blockchain of choice for developers in the blockchain gaming landscape, as it is widely considered to be the most secure, robust and interoperable blockchain.

Quick statistics

Important growth calculations

372

Offer
(TTM)

▴ 202.44% year

2.92 billion dollars

Invested capital
(TTM)

▴ 243.02% year

3.85 million dollars

Median deal size
(TTM)

▴ 126.47% year

32.75 million dollars

Median post valuation
(TTM)

▴ 66.48% year

Popular blockchain gaming companies

Sup entertainment software

Headquarters: San Francisco, CA
Management: Dom Hofmann, founder
Last appointment: February 2022

Sup Entertainment Software is the developer of a community-made science-fantasy universe intended for non-fungible tokens (NFT). The company offers decentralized science fiction projects where the community guides the story, fan-made projects that riff off the original non-fungible token (NFT) collection or include the non-fungible token (NFTs) as part of another game, allowing users to store and process the blockchain without maintenance for as long as Ethereum does.

In February 2022, the company received $12 million in seed capital in a deal led by Paradigm. The funds will be used to scale and develop other projects and universes

Axie Infinity

Headquarters: Ho Chi Minh City, Vietnam
Management: Trung Nguyen, co-founder, CEO and board member
Last appointment: April 2022

Axie Infinity is the developer of a gaming platform designed to allow players to earn in-game resources and exchange them for real money. The company’s platform specializes in creating a digital pet community centered around collecting, training, raising and battling creatures built on the Ethereum network, allowing players to enjoy a quality gaming experience.

In April 2022, the company raised $150 million in Series C venture funding in a deal led by Binance. Animoca Brands, Andreessen Horowitz and Accel also participated in the round.

Animoca brands

Headquarters: Hong Kong
Leadership: Robbert Yung CEO, North American Operations
Last appointment: September 2022

Animoca Brands is a mobile game and application developer committed to delivering digital property rights to gamers and internet users through play-to-earn economies and a fairer digital framework. The company leverages gamification and blockchain to develop and market a portfolio of mobile applications, games and additional products aimed at educational learning, which ensure transparency, security and new business models.

In September 2022, the company received $110 million in development capital in a deal led by Temasek Holdings, Boyu Capital and GGV Capital. The funds will be used for acquisitions, investments and “popular intellectual property” in an effort to push the metaverse further into public view.

Trending investors in blockchain games

AU21 Capital

Headquarters: San Francisco, CA
Number of deals in blockchain games: 37
Last deal in blockchain games: July 2022

Founded in 2017, AU21 Capital is a venture capital firm based in San Francisco, California. The firm seeks to invest in companies operating in the blockchain and artificial intelligence sectors. Some of the firm’s recent investments include Splinterlands an online blockchain trading card game and Blockchain e-sports gaming platform Colizeum.

Shima capital

Headquarters: San Francisco, CA
Investments in blockchain games: 33
Last deal in blockchain gaming: September 2022

Founded in 2021, Shima Capital is a California-based venture capital firm seeking to invest in cryptocurrency and blockchain startups. In September 2022, they participated in the seed round for Sports Innovation Lab, the developer of a blockchain discovery engine intended to connect people to the games, projects and communities they love.

Binance

Headquarters: Hong Kong
Number of deals in blockchain games: 28
Last deal in blockchain gaming: September 2022

Binance Labs is an accelerator that takes an initiative to incubate, invest in and empower blockchain and cryptocurrency entrepreneurs and communities. The company was founded in 2017 and is based in Hong Kong. Some of the blockchain gaming companies the firm is invested in include Community Gaming, Wincast and Planetarium.